Grid licensing and remunicipalisation

In 2010 and 2011, around 2,000 grid license agreements are due to expire in Germany. This will give municipalities the opportunity to take over their own grids - and energy suppliers will have the chance to position themselves as bidders for a strategic partnership with the municipalities.

From a municipal perspective, there is a range of options available: from simply awarding licenses to grid leasing, the formation of a grid operator company or the establishment of a municipal or community works with comprehensive added value (generation, sales and services).

The vision of placing energy supply in municipal hands is extremely attractive, especially when it comes to implementing climate protection goals on a local level and hence shaping energy supply in the city or community, for instance, in a more regenerative and distributed manner. Moreover, this will not be driven by the corporate interests of national and international players but by the goals of local municipal climate and energy policy. Taking over electricity and gas grids gives many municipalities cause to think about shaping their future energy supply.

But remunicipalisation is not the answer in some municipalities. It may sometimes make sense to simply negotiate better easement agreements that include more municipal rights. This involves clarifying the municipality's own economic goals and strategies and evaluating the opportunities and risks in the grid.

What's important for energy suppliers working as strategic partners with municipalities is to limit risks in conjunction with grid acquisition, grid separation and integration, and to be able to operate the grid in future in an economically efficient manner and to provide municipalities with support for their municipal and energy goals.

When it comes to deciding between the granting of licenses or remunicipalisation, both municipalities and energy suppliers need professional assistance, especially in order to draw up visions, goals, business models and strategies, evaluate grid-based data and develop business planning. Consideration must also be given to the regulatory framework of the energy sector and of municipal law. It is at this point in our projects that legal expertise comes into play.

Our services:

Development of municipal visions for grid operations or energy supply

Preparation of a catalogue of the municipality's economic goals

Business support in calls for tender and bidding procedures in the energy sector